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Business is an integral part of the environment or environment surrounding it. Business activities are affected by environmental requirements and expectations. Any business remains in existence for the satisfaction of social and economic needs. The business's functions are influenced by economic, social and political environment.
To satisfy the needs of consumers, the business needs essential production resources to build goods and services. Such as material, energy, wealth, human power etc. All these production tools are obtained from the society itself.
These instruments are passed through various processes of production or construction, they are converted into products and services and they are presented before the society for use. Society does not receive products or services for free, but instead of paying some money, which is called price or value.
The value derived from the society is used for the re-production of the means, so that the processes of production continue continuously. Business and society are the basis of each other's existence. A business will survive, as long as the demand for business products will continue by the society.
The business environment is made up of two words. Business term refers to the personic actions that engage humans. The meaning of business in economics is with all human economic activities, which are done for the production and distribution of goods and services and whose purpose is mutual interest.
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In this way, all actions taken by human beings for rewards come under the business. Any non-verbal action is not included in the business. In business, only those human actions are included, which are done to meet the various needs of the society.
Similarly, the environment refers to all those components which exist around any unit and the unit has to work only in these components.
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